Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My withholding exceeds my tax liability for each of the the…

Customer Question
My withholding exceeds my...

My withholding exceeds my tax liability for each of the the first three quarters of 2017. However, in December 2017 I received a taxable gift of $78,000 from which nothing was withheld. I know this must be added to my gross income and taxed appropriately. My question is, "Must I file a quarterly income estimate and prepay taxes on this $78,000 (plus my normal income minus normal withholding) for the fourth quarter? Or do I simply pay any excess tax liability due to this windfall for the whole year without quarterly filings? I had know idea the gift would occur until Christmas of 2017.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Except for the windfall, withholding on all Social Security and investment payments exceeds the tax liability on those payments. Only the windfall in the fourth quarter had no withholding.

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
12/27/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 3 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,575
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is***** am reading over your inquiry. I will respond to you shortly.

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 3 months ago

Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments.

REFERENCE SOURCE:

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

--------------------------------

May I ask why you say that the gift is taxable? Typically financial gifts are not taxable.

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 3 months ago

I guess we can continue interacting through this thread, the system shows the phone call request has failed.

Ask Your Own Tax Question
Was this answer helpful?
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I,m self-employed should I pay taxes on a quarterly basis?
Hi, I,m self-employed should I pay taxes on a quarterly basis ? Thank you … read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,575 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,575 satisfied customers
The IRS sent me the form 1041-ES quarterly estimated
Hi, the IRS sent me the form 1041-ES quarterly estimated payments for a trust that was dissolved in 2016. There was no income in 2017. What do I do? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Just discovered $1000 dividend income. Will IRS be confused
Just discovered $1000 dividend income. Will IRS be confused if I send 1040X today when I just filed my 1040 yesterday? Should I wait a couple of weeks? … read more
Carter McBride
Carter McBride
LLM
973 satisfied customers
I filed an estimated tax payment with the wrong voucher
I filed an estimated tax payment with the wrong voucher date. … read more
Marcia Mitrano
Marcia Mitrano
MBA
62 satisfied customers
Paying quarterly estimated taxes for a 2 member LLC (
Paying quarterly estimated taxes for a 2 member LLC ( Husband and wife ) that is operating as a Partnership and did not elect to be classified as a corporation... Am I understanding correctly that thi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,080 satisfied customers
My wife self-employed and she didn't payed estimated taxes
my wife self-employed and she didn't payed estimated taxes for 2017. i am filing joint return. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,080 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,954 satisfied customers
My adjusted gross income is $13,539. $8560 from a pension
My adjusted gross income is $13,539. $8560 from a pension from my ex-husband, $14204 from SS and $4706 from a bank I retired from which I will no longer be receiving. Do I need to pay taxes on my Soc … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
For estimated quarterly taxes I am using from 1120W for my
For estimated quarterly taxes I am using from 1120W for my LLC sub-S. Is this the correct worksheet if I file the 1120S and K1 for the business each year? I am dusting off the LLC and using it again f… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,575 satisfied customers
Will a tax preparer generate estimated quarterly vouchers in
Will a tax preparer generate estimated quarterly vouchers in excess of the calculated amount upon request? This question is not so much about the payments themselves as it is the actual vouchers.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,954 satisfied customers
I mistakenly entered an amount in the estimated tax payments
I mistakenly entered an amount in the estimated tax payments (line 65) but I have already filed for 2017. So I called the IRS but was told I must file a 1040 x with the correct info. Have completed bu… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
$200,000 capital gain $10,400 pension, $14,000 SS $6,000
$200,000 capital gain $10,400 pension , $14,000 SS $6,000 income tax would be??? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I made estimated tax payments in 2017, just found out I
I made estimated tax payments in 2017, just found out I didn't to. Now What … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,954 satisfied customers
Looking for guidance on filing self-employment business tax
Looking for guidance on filing self-employment business tax (federal) … read more
Gerald, Esq
Gerald, Esq
Juris Doctor
3,826 satisfied customers
Ied dividend and capital gains worksheet no longer
ied dividend and capital gains worksheet no longer available … read more
Carter McBride
Carter McBride
LLM
973 satisfied customers
My gross income is $17,105.64. Do I have to file a tax
My gross income is $17,105.64. Do I have to file a tax return? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,954 satisfied customers
Self employed, Im wondering if inmigration uses gross income
Self employed, Im wondering if inmigration uses gross income or net income for their figures... I make about 70,000 gross income on 1099 but after deductions net income is about 32,000.. we are a fami… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x